Oil prices end the week with growth
2023.01.13 10:09
Oil prices end the week with growth
By Kristina Sobol
Budrigannews.com – As China’s reopening and slowing U.S. inflation raised expectations for stronger global economic growth, which in turn led to an increase in crude demand, oil prices edged higher on Friday, putting them on track for solid weekly gains.
Futures were trading at $79.14 a barrel at 09:25 ET (14:25 GMT), while the contract was up 0.7 percent to $84.64 a barrel.
Both contracts have reached their highest levels in ten days and are expected to gain more than 6% this week.
Since Beijing reopened its international borders for the first time in three years, these substantial gains represent a sharp reversal after the year’s weak start. The majority of these gains have been driven by increased confidence regarding an economic recovery in China, the largest crude importer in the world.
Anecdotal evidence suggests that as the nation gets ready for the Lunar New Year holiday, which is its busiest time of the year, there will be more traffic.
In addition, the most recent data on trade indicated that crude oil imports in December averaged 11.35 million barrels per day, an increase of approximately 4.1 percent year-over-year, and that this number is only anticipated to rise in 2023.
In a note, ING stated, “Optimism around the China demand story has only provided further support to the oil market.” According to our balance, the oil market ought to tighten throughout the year. Prices should benefit from this, especially considering how little net long speculators currently own in Brent.
The fall in to a near nine-month low following the latest data showing falling has also helped the tone. This has raised hopes that the United States will ease back on its monetary tightening, allowing other central banks around the world to give their economies more support.
Oil and other commodities that are denominated in dollars become more affordable for foreign buyers when the dollar weakens.
The CFTC’s closure and the drilling rigs report came a week later.
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